MSRTC requests Rs 3,200 crore viability gap funding from Maharashtra government for electric bus fleet
By Eve
Maharashtra State Road Transport Corporation has asked the state government for Rs 3,191.42 crore in viability gap funding to support its electric bus operations. Transport Minister Pratap Sarnaik stated that electric buses have generated Rs 125.5 crore in losses through February 2025, with projected losses reaching Rs 718 crore in the next financial year as the fleet expands to 1,230 nine metre and 1,678 twelve metre e-buses from EV Trans Private Limited. The corporation pays Rs 24 extra per kilometre for electric buses compared to diesel, with e-buses costing approximately Rs 2 crore each versus Rs 40 lakh for diesel equivalents.
Why it matters: The funding request highlights the financial strain of large scale electric bus procurement under Gross Cost Contracts, signalling potential challenges for other state transport corporations planning EV transitions. The viability gap underscores the need for structured subsidy mechanisms to bridge operational cost differences between diesel and electric fleets during India's public transport electrification push.